Motor Vehicle Civil Action Amendments

New Section 1 establishes specific rules for time-limited demand letters, requiring them to be in writing, labeled clearly, and include material terms like a minimum 30-day acceptance period, a full settlement offer within policy limits, and details about the loss and injuries.

The new demand letter requirements mandate that the letter must not include demands exceeding the amounts supported by actual records or bills.

The bill now includes a specific timestamp of 1-27-26 6:27 PM, indicating a later revision date compared to the original version.

The House Sponsor was changed from 'LONG TITLE' to 'Anthony E. Loubet'.

The demand letter requirement was changed from a 'time-limited demand' to a 'policy-limit demand', requiring the letter to include specific incident details, injuries, liability basis, and supporting medical records.

New requirements were added for claimants to send written correspondence directly to unrepresented insureds if the insurer declines the policy limit demand, including a copy of the demand letter and a plain-language explanation of the claims.

New rules require the correspondence to inform the insured of their right to review the claimant's full documentation and discuss excess verdicts with their own legal counsel.

The insurance carrier's disclosure statement was updated to explicitly state whether indemnification extends beyond the policy limits or is limited to them, and to explain the basis for limiting indemnification.

The deadline for the insurance carrier to accept or reject a policy-limit demand was reduced from 45 days to 30 days.

A new 45-day waiting period was established before a claimant can file a lawsuit against an insured after receiving the required correspondence.

The amendment allowing seat belt misuse or failure to wear a seat belt to be considered contributory or comparative negligence in civil litigation was deleted.

New requirements mandate that insurers must provide a written disclosure to the insured stating whether they agree to defend the claim and whether they agree to indemnify the insured for any judgment or settlement.

The definition of 'reasonable proof of injury' was expanded to include sworn statements or other documentation, and it was clarified that non-economic damages like pain and suffering do not need to be quantified in the initial demand.

The required acceptance period for a time-limited demand letter was increased from 30 days to 45 days, and the start date for this period was clarified to be when the letter is received via certified mail.

A new mechanism was added allowing insurers to provide written notice of deficiencies in a demand letter, which pauses (tolls) the response deadline until the issues are fixed.